Core Insights - Oil States International (OIS) reported Q2 2025 earnings, highlighting a shift towards offshore and international projects to mitigate declines in U.S. land-based activities [1][4] - Adjusted diluted EPS was $0.09, surpassing Wall Street estimates, while GAAP revenue was $165.4 million, falling short of the expected $170.7 million [1][2] Financial Performance - Q2 2025 adjusted diluted EPS (non-GAAP) was $0.09, a 28.6% increase from $0.07 in Q2 2024 [2] - GAAP revenue decreased by 11.3% year-over-year from $186.4 million in Q2 2024 to $165.4 million in Q2 2025 [2] - Adjusted EBITDA was reported at $21.1 million, reflecting a 100% decline year-over-year [2] - Free cash flow dropped 45.6% from $14.9 million in Q2 2024 to $8.1 million in Q2 2025 [2] Business Segments Performance - The Offshore Manufactured Products segment saw a 5% year-over-year revenue increase to $106.6 million, driven by international and offshore activity [5] - Completion and Production Services revenue fell 37% year-over-year to $29.4 million, despite improved adjusted EBITDA margin to 28% [6] - Downhole Technologies faced a 61% decline in adjusted segment EBITDA, resulting in an operating loss of $4 million due to supply chain issues and weak demand [6] Strategic Focus - The company is focusing on long-term offshore projects that are less sensitive to oil price fluctuations, while addressing challenges in U.S. land operations through restructuring and cost management [4][7] - Offshore and international revenue accounted for 72% of total sales in Q2 2025, up from approximately 63.7% in Q2 2024 [7] Cost Management and Investments - Restructuring costs totaled $3.7 million, with $2.2 million related to Completion and Production Services [8] - Capital expenditures reached $10.3 million, including investments in a new facility in Batam, Indonesia, aimed at supporting offshore expansion [9] Innovation and Recognition - The company received an industry award for its Low Impact Workover Package, showcasing its commitment to developing advanced products [10] Outlook - Full-year 2025 revenue guidance is set between $700 million and $735 million, with EBITDA guidance of $88 million to $93 million [11] - The record backlog and strong international bookings provide some assurance for revenue stability, but ongoing U.S. market weakness may impact future outlook [11][12]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number: 001-16337 OIL STATES INTERNATIONAL, INC. (Exact name of registrant as specified in its ch ...

Oil States International (OIS) Q2 2025 Earnings Call July 31, 2025 10:00 AM ET Speaker0Thank you for standing by. My name is JL, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oil States Second Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.I would now like to turn the conference over to Ellen Pendleton, VP of Human Resou ...

(1) These are non-GAAP measures. See "Reconciliations of GAAP to Non-GAAP Financial Information" tables below for reconciliations to their most comparable GAAP measures as well as further clarification and explanation. (2) Operating income (loss) included charges totaling: $3.7 million for the three months ended June 30, 2025; $0.9 million for the three months ended March 31, 2025; and $4.4 million for the three months ended June 30, 2024. See "Segment Data" below for additional information. _______________ ...

INVESTOR PRESENTATION APRIL2024 oilstatesintl.com Forward-looking Statements The following contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties th ...

Industry Overview - The Zacks Oil and Gas - Mechanical and Equipment industry provides essential oilfield equipment, including production machinery, pumps, and drilling appliances, to exploration and production companies, which is closely tied to upstream energy expenditures [3] - The industry is currently facing challenges due to rising oil production that may exceed yearly demand growth, leading to a potential decline in prices and reduced demand for drilling and production equipment [1][4] Future Outlook - The U.S. Energy Information Administration (EIA) projects West Texas Intermediate Spot Average prices to be $61.81 per barrel in 2025 and $55.24 per barrel in 2026, significantly lower than the $76.60 per barrel price for 2024, which is expected to discourage exploration and production activities [4] - Exploration and production companies are becoming more conservative in capital spending, prioritizing capital returns over increased production spending, which is likely to further diminish demand for drilling and production equipment [5] Industry Performance - The Zacks Oil and Gas - Mechanical and Equipment industry has a Zacks Industry Rank of 206, placing it in the bottom 16% of over 250 Zacks industries, indicating gloomy near-term prospects [7][8] - Over the past year, the industry has declined by 3.9%, outperforming the broader Zacks Oil - Energy sector's decline of 4.6% but lagging behind the S&P 500's increase of 10.8% [9] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 5.66X, lower than the S&P 500's 16.39X but higher than the sector's 4.59X [11] - Historically, the industry has traded as high as 43.82X and as low as 1.11X over the past five years, with a median of 10.37X [11] Company Insights - Natural Gas Services Group, Inc. (NGS) is benefiting from increased demand for compression equipment due to higher exports of Liquefied Natural Gas (LNG) [14] - Solaris Energy Infrastructure, Inc. (SEI) has maintained stable activity levels despite lower oil prices, with a 25% increase in system activity in the first quarter [18] - Oil States International, Inc. (OIS) is experiencing growth from international customers, particularly in deep ocean extraction, with new orders exceeding deliveries by 1.5 times in the last quarter [20]

Financial Performance - Revenues for Q1 2025 were $159,938, a decrease of 4.0% from $167,262 in Q1 2024, with product revenues increasing by 6.0% to $100,551, while service revenues decreased by 18.6% to $59,387[13]. - Net income for Q1 2025 was $3,158, compared to a net loss of $13,374 in Q1 2024, marking a significant turnaround[14]. - Operating income improved to $5,639 in Q1 2025 from a loss of $11,177 in Q1 2024, indicating better operational efficiency[13]. - Cash flows from operating activities were $9,295 in Q1 2025, a recovery from cash used of $11,360 in Q1 2024[22]. - The company reported comprehensive income of $8,697 in Q1 2025, compared to a comprehensive loss of $16,401 in Q1 2024, driven by positive currency translation adjustments[14]. - The company reported a net increase in contract assets of $7.8 million for Q1 2025, primarily due to $20.6 million in revenue recognized during the period[36]. - The company’s income tax expense for the three months ended March 31, 2025, was $1.0 million, compared to $24 thousand for the same period in 2024[58]. - The company’s capital expenditures for the three months ended March 31, 2025, amounted to $9.2 million[66]. - Consolidated total revenues for the first three months of 2025 decreased by $7.3 million, or 4%, compared to the same period in 2024, primarily due to the exit of underperforming service offerings which generated $16.8 million in revenues in Q1 2024[108]. - Net income for the first three months of 2025 was $3.2 million, or $0.05 per share, compared to a net loss of $13.4 million, or $0.21 per share, in Q1 2024, which included a non-cash goodwill impairment charge of $10.0 million[106]. Assets and Liabilities - Total assets decreased to $990,735 as of March 31, 2025, from $1,005,108 at the end of 2024, reflecting a reduction in overall asset base[17]. - As of March 31, 2025, total accounts receivable was $186.3 million, a decrease from $197 million as of December 31, 2024, with an allowance for doubtful accounts of 1%[34]. - Total long-term debt as of March 31, 2025, was $124.7 million, slightly up from $124.7 million as of December 31, 2024[41]. - The company’s deferred revenue (contract liabilities) decreased by $1.5 million to $50.9 million as of March 31, 2025[35]. - The company’s inventories increased to $255.1 million as of March 31, 2025, compared to $253.8 million as of December 31, 2024[37]. - The company had $123.5 million principal amount of 2026 Notes outstanding as of March 31, 2025, with a maturity date of April 1, 2026[135]. - Total debt represented 15% of the combined total debt and stockholders' equity as of March 31, 2025, down from 16% as of December 31, 2024[144]. Shareholder Activities - The weighted average number of common shares outstanding decreased to 60,167 in Q1 2025 from 62,503 in Q1 2024, reflecting share repurchase activities[13]. - The company purchased 1.0 million shares of common stock at a total cost of $5.3 million during the three months ended March 31, 2025, leaving $36.0 million remaining under the current share repurchase authorization[54]. - The company repurchased $5.3 million of common stock during Q1 2025, leaving $36.0 million remaining under the share repurchase authorization[139]. - A total of 1,493,961 shares were purchased from January 1 through March 31, 2025, at an average price of $5.19 per share[160]. - The Board of Directors authorized a $50 million share repurchase program, with $14 million utilized as of March 31, 2025[161]. Operational Efficiency - The company incurred $12,025 in depreciation and amortization expenses in Q1 2025, down from $14,195 in Q1 2024, suggesting a reduction in asset depreciation[13]. - The company’s amortization expense for Q1 2025 was $3.8 million, down from $4.3 million in Q1 2024[40]. - Selling, general and administrative expenses for the quarter were $22.496 million, with $9.129 million attributed to corporate expenses[68]. - Corporate expenses increased by $0.7 million, or 8%, in Q1 2025 compared to Q1 2024, primarily due to higher performance-based incentive compensation costs[126]. - The Downhole Technologies segment reported an operating loss of $2.1 million in Q1 2025, an improvement from a $12.1 million loss in Q1 2024, which included a $10.0 million goodwill impairment charge[125]. Market Conditions and Future Outlook - Management expects that the trade conflict and increased crude oil production could adversely affect demand for the company's products and services, particularly in the United States, over the balance of 2025[84]. - The company expects continued volatility in crude oil and natural gas prices due to geopolitical conflicts and economic conditions, which may impact customer capital investment decisions[88]. - The average price of Brent crude oil for the quarter ended March 31, 2024, was $82.92 per barrel, while WTI crude averaged $77.50 per barrel[82]. - The spot price of WTI crude oil declined approximately 20% in April 2025 due to trade tariffs and OPEC+ plans to increase production, raising uncertainties about future demand[83]. Strategic Investments - The company is investing in research and product development for alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities[92]. - The company expects to invest approximately $25 million in capital expenditures during 2025, funded by available cash and internally generated funds[133].

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [4][11] - Adjusted net income totaled $4 million, or $0.06 per share, after excluding facility exit charges of $1 million [11] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital [5][12] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [11][12] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the fourth quarter [11][12] - Downhole Technologies segment generated revenues of $33 million with adjusted EBITDA of $2 million [12] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times for the quarter [5][14] - Despite economic volatility and potential tariff impacts, the company anticipates that the majority of its backlog, which consists of projects outside the U.S., will remain largely unaffected [14][16] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for customers and stockholders [16] - Strategic actions have been implemented to mitigate potential negative impacts from tariffs, including optimizing the supply chain and adjusting pricing to customers [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [14][16] - The company expects strong free cash flow generation for the full year, with cash flow from operations projected to range between $65 million and $75 million [13][16] Other Important Information - The company plans to be opportunistic regarding share repurchases due to low stock prices and aims to maintain a robust free cash flow yield [16][32] - The anticipated impact of tariffs on costs is estimated to be in the range of 5% to 10% higher, particularly affecting the Downhole Technologies segment [38] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-term development drilling programs are less affected by short-term commodity price fluctuations, indicating confidence in ongoing projects [20][21] Question: Sequential improvement in Completion and Production Services - Management highlighted that the recovery in Gulf operations and cost reduction efforts contributed to improved margins, with expectations for continued positive performance [25][28] Question: Balance sheet and capital allocation strategy - Management confirmed a focus on aggressive share repurchases and debt reduction, given the current low stock price and upcoming debt maturity [30][32] Question: Impact of tariffs on costs - Management indicated that the tariff impacts are expected to be minimal, with similar cost increases anticipated across competitors in the Downhole Technologies segment [38][40]

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [5][13] - Adjusted net income totaled $4 million, or $0.06 per share, after excluding facility exit charges of $1 million [13] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital [6][13] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [13][14] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the fourth quarter [13][14] - Downhole Technologies segment generated revenues of $33 million with adjusted EBITDA of $2 million [14] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times [6][17] - Despite concerns over tariffs and potential economic impacts, the company anticipates that operations outside the U.S. will remain largely unaffected [9][12] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for shareholders [18] - Strategic actions have been implemented to mitigate potential negative impacts from tariffs, including optimizing the supply chain and adjusting pricing [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [17] - The company maintained its full-year revenue guidance of $700 million to $735 million and EBITDA guidance of $88 million to $93 million, citing strong bookings and improved margins [18] Other Important Information - The company generated $9 million from the monetization of equipment and inventory, which was used for capital expenditures and share repurchases [6][14] - Planned capital expenditures for the year are expected to total $25 million, with a significant portion allocated to the new facility in Batam, Indonesia [14][15] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-cycle projects, particularly in development drilling, are less affected by short-term commodity price fluctuations, indicating a stable outlook for ongoing projects [21][22] Question: Impact of Gulf operations on margins - Management confirmed that Gulf operations were a major driver of margin improvement, with expectations for continued positive activity in the region [27][30] Question: Share repurchase strategy amidst low stock prices - The company plans to be aggressive in share repurchases given the current low stock price, while also considering debt reduction as a priority [31][34] Question: Potential tariff impacts on costs - Management indicated that tariff impacts are expected to be minimal, with potential cost increases in the Downhole Technologies segment being manageable through price adjustments [40][42]

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [4][12] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital trends [5][12] - The company generated $9 million from the monetization of equipment and inventory, which was used for capital expenditures and share repurchases [5][12] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [12] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the previous quarter [12][13] - Downhole Technologies segment had revenues of $33 million and adjusted EBITDA of $2 million [13] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times [5][15] - Despite concerns over tariffs and potential economic downturns, the company anticipates that operations outside the U.S. will remain largely unaffected [6][8] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for customers and stockholders [17] - The strategic sourcing of goods and materials is being assessed to mitigate potential impacts from U.S. tariffs, with a focus on maintaining operations and profitability [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [15] - The company maintained its annual revenue guidance of $700 million to $735 million and EBITDA guidance of $88 million to $93 million for 2025, citing strong bookings and improved margins [17] Other Important Information - The company plans to be opportunistic regarding share repurchases due to low stock prices and aims for a free cash flow conversion rate of over 40% [33] - The impact of tariffs on costs is expected to be in the range of 5% to 10%, particularly affecting the Downhole Technologies segment [37][38] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-term development drilling programs are less affected by short-term commodity price fluctuations, indicating confidence in ongoing projects [20][21] Question: Impact of Gulf operations on margins - Management highlighted a strong recovery in Gulf operations, contributing to improved margins in the Completion and Production Services segment, with expectations for continued positive activity [26][30] Question: Capital allocation priorities - The company plans to prioritize share repurchases and debt reduction, given the current low stock price and upcoming debt maturity [31][33] Question: Tariff impact on costs - Management indicated that tariff impacts are expected to be minimal, with similar cost increases anticipated across competitors in the Downhole Technologies segment [38][40]